Father's Day Spending to Reach $9 Billion

Dad's generally get a raw deal when it comes to gifts. While moms can expect flowers, chocolates, and jewelry in honor of Mother's Day, dads are more likely to get a 'world’s Greatest Dad’ neckties, golf clubs, or barbeque sets. Though presents for dads may lag behind those for moms, according to a survey by the National Retail Federation, spending on Father's Day gifts in the U.S. is anticipated to reach $9 billion this year, up from $8.2 billion last year.

The Father’s Day Consumer Intentions and Actions Survey, conducted by BIGresearch, shows that the average person is expected to spend $88.80, compared to the $122.16 spent earlier this year on mom.

“In spite of higher gas prices, lower consumer confidence, and inflation concerns, shoppers are still opening their wallets for what’s really important,” said NRF President and CEO Tracy Mullin. “Because retailers across all channels and formats have something to gain from Father’s Day spending, we expect the holiday to be quite promotional this year.”

According to the results of a survey of 2,772 members of the Jewelry Consumer Opinion Council (JCOC) conducted from April 21 to 28, 54 percent plan to purchase a Father’s Day gift this year. Of those who plan to buy gifts, 12 percent intending to buy fine jewelry and watches, up from nearly 10 percent last year, four percent in 2004, and just over three percent in 2003.

Within the jewelry category, 60 percent are likely to purchase a watch, 16 percent a fashion ring, and six percent a necklace—similar to 2005. Over 25 percent plan to buy plain metal jewelry, a leading choice since 2003. This year, more gifters (41 percent) are considering diamonds, up from a quarter last year, and single digits two years prior.

If given the choice, dads say they’d like fine jewelry as a gift, with 14 percent interested, up from 13 percent last year. Watches and fashion rings remain a favorite request of dads two years running. Fathers confirm that diamonds are as appealing to them as they are to women, with 52 percent wishing to receive diamond jewelry, up from 40 percent in 2005.

“The men’s jewelry category is under-represented in merchandise and marketing not only for Father’s Day, but other holidays and occasions,” says Elizabeth Chatelain, president of MVI Marketing Ltd., founder of the JCOC. “Recent statistics show that men’s jewelry represents just over 10 percent of the total $57-plus-billion jewelry market. Targeting the male jewelry market for gift-giving women, as well as self-purchasing men, is a new growth opportunity.”

For Father’s Day gifters, nearly 40 percent say that they are undecided what to buy, providing an opening for savvy jewelers. “There’s a great need to alter perceptions that men in fact do like and want fine jewelry and watches as gifts, and promote the stylish products available for them at affordable prices,” says Chatelain. “A third of gifters in our survey said that if they knew they could buy nice styles in fine jewelry and watches for men starting at $99 they would, with another third open to the idea.”

Chatelain advises jewelers stock a selection of gent’s watches and fine jewelry in classic and masculine styles, with strength in the $100 to $300 price range. Popular choices include simple fashion bands for the right hand, plain necklaces and bracelets, and classic and whimsical cufflinks. “Marketing efforts should appeal to the collector in all men, as proven in the enormous growth of the watch market,” she says. “Jewelers must devote an appropriate amount of space to the category, preferably near the watches; train staff to recognize sales opportunities; and encourage male associates to wear jewelry at the counter.”

According to the NRF's survey, women are the lead spenders on Father's Day, with average per-person spending anticipated to reach $90.41, about the same as 2005 spending at $91.46. Men will shell out approximately $87.07 for dad this year, slightly higher than the $79.42 last year.

While jewelry does not appear in the NRF's spending statistics, the organization believes that most dads can expect at least a greeting card, with almost 69 percent of consumers expected to purchase at least one card for Father’s Day. Two other noticeable favorites for Dad this year are gift certificates (27 percent), and special meals or outings (38.1 percent). Other popular categories include clothing (32.0 percent), books or CDs (22.3 percent), electronics or computer-accessories (15 percent), home improvement or gardening tools (10.9 percent), sporting goods or leisure items (9.1 percent), and tools or appliances (11.2 percent).